WPP (WPP) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 marked the first reporting period under the Elevate28 strategy, with a focus on growth and business stabilization; reported net revenue declined 8.9% year-over-year, and like-for-like revenue less pass-through costs fell 6.7%.

• All major business segments and regions experienced negative growth, with North America and Global Integrated Agencies particularly impacted.

• New business momentum remained strong, with significant client wins and retentions, and industry recognition for creative and media excellence.

• Strategic initiatives included new leadership appointments, expanded partnerships (notably with Adobe and Google), and ongoing portfolio asset disposals.

• Early actions to simplify and integrate operations are resonating with clients, supporting confidence in the path to growth.

Financial highlights

• Q1 2026 revenue was £3,030m (down 6.6% reported, 4.0% like-for-like); revenue less pass-through costs was £2,260m (down 8.9% reported, 6.7% like-for-like).

• FX was a 2.1% headwind, mainly due to US dollar weakness; M&A impact was minimal at -0.1%.

• Adjusted net debt at 31 March 2026 was £3.4bn, down from £3.6bn a year earlier, aided by IFRS 9 amendments.

• Issued $600m of 6.5% bonds (swapped to €519m at 5.45%) in March 2026, extending weighted average debt maturity to nearly six years.

• Available liquidity stood at £3,650m, with a BBB/Baa3 investment-grade credit rating.

Outlook and guidance

• Like-for-like revenue less pass-through costs expected to decline mid- to high single digits in H1 2026, with improvement anticipated in H2.

• Full-year headline operating profit margin guided at 12–13%, with H1 margins down due to net sales performance and growth investments.

• Adjusted operating cash flow before working capital projected at £800m–£900m; excluding restructuring, £1.0bn–£1.1bn.

• FX expected to be a 0.4% drag on FY revenue less pass-through costs.